Massive Tax Credit Overpayment Problem

xsinaftersinx

Hiya Guys,

Just wondering what the biggest supposed overpayment has been on here recently?

Last year we received a letter to say that we had been overpaid by over £9000, I didn't understand how this was possible as we'd not received that amount from them in total, my son is only 6 now and there is no way we'd had that amount in the 5 years prior to this. We'd always been completely honest with them, my OH only returned to work (16 hours per week) that year and in the time since he was born I'd been earning between £16k and £23K per year.

I was also made redundant in 2012 and was taking a bunch of temp jobs, calling them almost monthly updating how much I was earning or not as the case may be.

We called them and with through income/expenditure and they agreed that there was no way that we could pay it back. Last year we didn't receive any payments at all.

We have just received this years pack and it says we are not due anything again, which I expected (due to getting a new job) but they are now saying that we owe over £12.5k. How the hell does that happen???? How has the debt gone up without us getting any further payments.

This is a massive stress on the whole family, I can't afford to pay this back, I don't understand how they are saying I owe so much when there is no way we have ever had that amount in the first place and how we have always been honest in the forms returned.

I just don't get it!

pmlindyloo

Help from the experts will arrive at some time so hang on in there. Blondbubbles and Icequeen are regular posters who know their stuff. (apologies to other 'experts' that I've missed.)

In the meantime read Martin's guide:

http://www.moneysavingexpert.com/family/tax-credit-child-working-overpayment#over

Horseunderwater

If you still have all award letters find them & check them all for errors, that is usually where the answer lies. If not ask HMRC for copies. You'd be surprised at what can happen, we got paid £3.1k or so one year & I rang them to say that was wrong, could they tell me why. It's correct spend it. We did then spent to April 2012 paying it all back. Error in my case, the online system had not registered my income, just hubbys. Found out when award letter came.

xsinaftersinx

Thanks for your help, I'm not sure we still have them to be honest, we've moved a few times since my son was born and the paper ones were always correct as far as we could see. It's just such a huge amount to owe the government and I'm not sure how we are ever going to pay it off.

Bonniepurple

Ring them up and ask. If the debt has jumped with no further funds received then it is likely to be their error.

skateykatey

From your opening post,you say that you haven't received more than £9k over the past 5 years; is that correct? Your awards would have been less than £2k a year.

For any overpayment that large, off the top of my head, the main culprit is customers declaring themselves to be in receipt of income based job seekers allowance rather than contributions based job seekers allowance.

During those first years from when the overpayment was incurred were either of you in receipt of JSA?

xsinaftersinx

Hi,

I was on JSA for about 2 months in 2012 when I was made redundant, my other half has not claimed any benefits at all. From memory we were getting £120 per month at most when I was earning the least amount and that went down to about £35 a month when I started working again.

MissMoneypenny

xsinaftersinx wrote: »

Last year we received a letter to say that we had been overpaid by over £9000, I didn't understand how this was possible as we'd not received that amount from them in total, my son is only 6 now and there is no way we'd had that amount in the 5 years prior to this.

xsinaftersinx wrote: »

From memory we were getting £120 per month at most when I was earning the least amount and that went down to about £35 a month when I started working again.

£9,000 divide by 5 years = £1,800 per year.

£1,800 divide by 52 weeks = £34.61 per week.

Have you got all your bank statements?

xsinaftersinx

Hi,

Looking at my bank accounts the most I was getting was £37.83 a fortnight, so about £910 per year.

dundeediva

tax credits don't give payment fortnightly, its either weekly or 4-weekly.

have you called them and asked why you have been overpaid?

xylophone

Write and ask for a complete breakdown of all amounts said to have been received together with details of the account(s) to which they are said to have been paid.

You should also enquire how the amount owned is said to have risen by over £3000.

Keep a copy of your letter.

Send it "signed for".